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Hear More, Do More, Be More GN Group – Annual Report 2018

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Hear More, Do More, Be More GN Group – Annual Report 2018 GN Store Nord A/S Hear more, Do more, Be more GN Group – Annual Report 2018 WorldReginfo - 5e31331e-c98f-4ebe-b124-1187195f8dc0 2 Management's report ⋅150 year anniversary Contents Contents Management’s report Business review 2018 150 years of innovation 3 Built on resilience and agility 4 Connecting the world 5 World-changing innovations 6 Transforming at every turn 7 Engineering sound for daily life 8 Forming powerful connections 9 150 years of partnerships 10 2018 at a glance 11 Our investment case 12 Global reach, local presence 13 Business model and strategy 14 Business areas and brands 15 Foreword by the chairman 16 Consolidated financial highlights 18 Group performance 2018 19 Financial outlook 21 GN Hearing 24 GN Audio 30 Corporate responsibility 38 Risk management 40 Shareholder information 45 Corporate governance 47 Board of Directors 51 Executive Management 53 Financial statements Consolidated - Financial statements 2018 60 Parent company - Financial statements 2018 116 Statement by the Executive Management and the Board of Directors 128 Independent auditors’ report 129 GN Group – Annual Report 2018 WorldReginfo - 5e31331e-c98f-4ebe-b124-1187195f8dc0 3 Management's report ⋅150 year anniversary Contents 150 years of innovation 2019 marks GN’s 150-year anniversary. The company’s story is one of constant change and progression – first connecting the world through telegraph in the 19th century, then taking a leap into radio communications in the 1940s, until the 21st century opened a new era of digital technology and sound engineering 1871 1947 1960s Long before modern mobile phones, GN was first to engineer two-way radio- telephones – World’s first internet, the telegraph, making Bobby cuts transcontinental communica- much more effi- GN’s Storno replaced the telegraph tion time from months to hours cient with more agile radio communication 1977 1979 2000 Moving into World’s first GN hearing aids headset for call introduces with renowned centers, the world’s Danish Stetomike, with a first mobile Danavox lasting design Bluetooth expertise – became a headset – Royal blockbuster no strings integrated attached. hearing glasses 2014 2018 2018 World’s first World’s first Made for Apple true wireless hearing aids earbuds certified for introduce direct Skype for smartphone Business – a connectivity – true making life “prosumer” sound better product Communication headset with innova- tive hearing protection designed for defense and security forces GN Group – Annual Report 2018 WorldReginfo - 5e31331e-c98f-4ebe-b124-1187195f8dc0 4 Management's report ⋅150 year anniversary Contents Built on resilience and agility As a company that has changed its course throughout our 150-year history, GN has had to continuously adapt. As we follow unexpected paths, we use our courage and agility to build new solutions and stay ahead of the curve 1800s 1900s 2000s Forging new paths Growing our connections The speed of change Beginning in Denmark, GN ventured As several revolutions and two major GN has remained agile for 150 years bravely into new territory to change World Wars caused global upheaval, – and the 21st century is no worldwide communication. From GN was determined to persevere. different. Innovation is increasing, trekking through freezing As telegraph lines were temporarily business models are changing, and temperatures in Siberia to laying interrupted, GN made plans for a the world is moving rapidly toward a intricate underwater cables in Hong post-telegraph future. This led to more digital future. At GN, we Kong, GN established a pioneering GN’s pioneering role in remain industry leaders as we telegraph line in China that endured communications and our expansion continue to listen to users, challenge conflicts, and even wars, along its into FM radio transmission, the status quo and transform path. intelligent audio and hearing possibilities that make life sound solutions. better. GN Group – Annual Report 2018 WorldReginfo - 5e31331e-c98f-4ebe-b124-1187195f8dc0 5 Management's report ⋅150 year anniversary Contents Connecting the world Our ambitious 150-year journey has taken us from telegraph cables to radio waves and intelligent audio engineering. Today, our global mindset continues to facilitate communication for people worldwide 1869 1960s 2019 The first to reach China Keeping people in touch Still connecting people C.F. Tietgen founded the Great Before the era of mobile phones, GN Today, GN continues to transform Northern Telegraph Company and made it easier to make calls with the communication by providing used the Danish royal connection drop of a coin. Payphones began to intelligent audio solutions to millions with Russia to build a telegraph line city streets around the world of people worldwide. With over through Siberia to the East. By 1871, and by 1991, GN had exported 6,000 employees and sales in 100 GN opens the world’s first telegraph nearly 250,000 payphones to more countries, we are helping people connection from Northern Europe to than 35 countries worldwide – around the world Hear more, Do China – transforming international bringing people closer together. more and Be more than they ever communication and trade. thought possible. GN Group – Annual Report 2018 WorldReginfo - 5e31331e-c98f-4ebe-b124-1187195f8dc0 6 Management's report ⋅150 year anniversary Contents World-changing innovations 150 years ago, we were the first to lay revolutionary cable connections between the West and the East. Today, our entrepreneurial spirit has led to countless innovations and global firsts in sound and intelligent audio solutions 1871 1979 2014 World’s first internet World’s first headset World’s first Made for Apple hearing aids Previously, it took 6 to 8 weeks to Call centers were popping up send letters by ship. In a pioneering worldwide, and employees needed With our combined expertise in journey through new territory, GN functionality and comfort while sound, audio and hearing aid built a new telegraph connection making calls in crowded spaces. technology, GN’s ReSound LiNX™ from Northern Europe to China. With our expertise in microspeakers were the first Made for Apple Messages could now be transmitted and microphones, GN introduced the hearing aids in the industry, in a matter of minutes, as this ‘inter- first headset for call centers, providing direct iPhone connectivity net’ made global communication Stetomike, with a design that without an extra device. Finally, faster than ever before. remained virtually unchanged over direct high-quality audio streaming time. was a reality for people with hearing loss. GN Group – Annual Report 2018 WorldReginfo - 5e31331e-c98f-4ebe-b124-1187195f8dc0 7 Management's report ⋅150 year anniversary Contents Transforming at every turn We have succeeded for over 150 years by seeing new potential around every corner. Today, our start-up mindset makes sure we stay agile and ready for the future 1940s 1970s 2019 Reaching new wavelengths Playing a bigger role Leading change After World War II, the world was Not just a telegraph and radio com- As the world continues to change, so changing, and GN was ready to take pany, by the 1970s GN played an will GN. Today, our solutions con- the lead. Moving beyond cable net- even bigger role in sound and tele- tinue to transform global communi- works to wireless signals, GN in- communications. The expertise at cation for the workplace, the med- vested in the development and pro- GN now included radio telephone tech industry and the consumer. To duction of a promising new system, producer Storno, telephone manu- remain at the cutting-edge of sound FM radio communication – a massive facturer GNT Automatic and the processing and connectivity, we look leap into the future of global com- high-quality portable battery com- ahead at how we can continue to munications. pany Hellesens. make life sound better for everyone. GN Group – Annual Report 2018 WorldReginfo - 5e31331e-c98f-4ebe-b124-1187195f8dc0 8 Management's report ⋅150 year anniversary Contents Engineering sound for daily life For 150 years, we have engineered technology by listening to people’s true needs. Today, our intelligent audio solutions continue to bring people together in meaningful ways 1871 1960s 2003 Cracking the code First mobile phones More natural sound Previously, there was no telegraphic Long before modern mobile phones, Continuing to break new ground, GN code for Chinese characters. GN’s GN’s Storno was the first to engineer introduced ReSound Air™, the first focus on innovation and radio-telephones. By the 1960s, hearing aid with ‘open fitting’. For entrepreneurship produced the first Storno was engineering radio- the very first time, there was no Chinese Telegraphic Code Book, telephones for the police, hospitals, blocking of the ear canal, so sound uniquely identifying Chinese fire brigade and for use in the could enter the ear naturally. This characters by four digits and paving Munich Olympics in 1972. John made hearing aids feel more the way for modern Lennon even had a special Storno comfortable and sound more natural computerization. telephone in his Rolls Royce. to users. GN Group – Annual Report 2018 WorldReginfo - 5e31331e-c98f-4ebe-b124-1187195f8dc0 9 Management's report ⋅150 year anniversary Contents Forming powerful connections Ways of connecting the world are always evolving. After 150 years, we continue to find new ways to transform technology and improve connections through the power of sound 1871 2000 2017 Connecting people High-quality wireless Ground-breaking cloud
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